On January 1, 2016, Horton Inc. sells a machine for $24,800. The machine was originally purchased on January 1, 2014 for $44,200. The machine was estimated to have a useful life of 5 years and a residual value of $0. Horton uses straight-line depreciation. In recording this transaction:

a gain of $1,720 would be recorded.

a loss of $1,720 would be recorded.

a loss of $19,400 would be recorded.

a gain of $24,800 would be recorded.